Manila's Petron aims to raise $500 mln from share sale

MANILA - Top Philippine refiner Petron Corp said on Thursday it aimed to raise as much as $500 million through a preferred share issue, but it did not give details of timing.

Petron told the Philippine Stock Exchange proceeds from the preferred share offer would be used to finance several capital and expansion projects.

Petron officials said they could not immediately provide additional details.

In May, the company said it planned to spend as much as $1 billion on additional refinery units, and that financing would come from a bonds and a preferred share issue.

At that time Petron was looking at issuing 15 billion pesos ($318 million) worth of preferred shares.

In that month, the company raised 10 billion pesos from the sale of 5- and 7-year fixed rate notes to fund its expansion.

Part of its expansion plan include the building of a second fluidised catalytic cracking (FCC) unit that will enable the full conversion of residual products into higher-value gasoline, LPG, diesel and propylene.

The company last year began operating its first FCC which converts 75 percent of every barrel of crude oil into white products.

Petron has a capacity of 180,000 barrels per day and supplies nearly 40 percent of the Southeast Asian country's fuel requirements.

San Miguel has an exclusive option to buy a 50.1 percent stake in Petron from UK investment firm Ashmore Group as it moves into heavy industry from its core food and drinks business.